ASSOCHAM SUGGESTIONS FOR THE INDIAN BICYCLE SECTOR..


April 19 World Bicycle Day

Bicycle Day is April 19, commemorating 1943 April 19, when Dr. Albert Hofmann first took LSD intentionally.

The bicycle industry needs to move forward in terms of product quality, production automation and techniques by introducing, absorbing and comprehending sophisticated equipment and technologies available globally.

In recent times, bicycles have become less important in day-to-day life, potentially leading to fading out of most of the demand thereby resulting in major transformation in the industry.

ASSOCHAM suggests that few steps need to be taken to give a boost to the bicycle industry:


ASSOCHAM strongly proposes stricter anti-dumping laws to save the domestic industry from cheap imports of bicycles and its parts from China. Chinese imports have flooded the Indian market as they have a comparative cost advantage.
So, it is necessary to formulate stringent laws for our industry to flourish.

ASSOCHAM suggests that the government should take measures to promote culture of cycling in India by making stricter laws for cyclist's safety on roads.

Cycling in India should be promoted to make it a professional sport, so that more and more cycle production takes place and gives a boost to the industry. The government should review FTAs and safeguarding measures to avoid misuse of SAFTA.

ASSOCHAM recommends that the government should reduce the excise duty on the bicycles.

Increase in excise duty in budget 2013-14 has increased the cost of bicycle purchases, burdened the common man and also affected the industry adversely. The number of Bicycles exported over the past few years has been declining on account of uncompetitive pricing while the industry of China has grown.

A Bicycle saves enormous amount of energy and also contributes to pollution-free environment. Hence, there is enough justification for the reduction of excise duty on bicycles.

ASSOCHAM recommends that the import duty on bicycles and its parts should be increased from 20 % to 30 %. If the central government takes this step, then the prices of Chinese and Indian bicycles will equate in the global market.

Concept of cycling clubs should be promoted...

A cycling club's activities vary from one aspect of cycle sport to a range of cycling and social activities.

Scheme of providing free bicycles has been implemented in few states such as Karnataka, Uttarakhand, Punjab, Haryana and Bihar.

ASSOCHAM suggests that all other states should also implement this scheme, so that demand of bicycles goes up.

Src: ASSOCHAM


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